Revolutionizing Savings: A Closer Look at the Nigerian Fintech Startup, REACH

Imagine participating in an informal savings group where a cluster of colleagues or friends pool together their funds, with one lucky member enjoying the aggregated sum at the end of each month. Envision 12 friends, each contributing 50,000 Naira/$200 monthly. The group, therefore, amasses a shared 600,000 Naira/$2,400 per month, where one individual gains the entire amount while maintaining their monthly donation to ensure consistent collection for the following member. This method of collective saving provides a convenient solution to help plan for considerable expenses, like rent, car down payment, or a vacation.

Now imagine achieving the same goal, but rather than relying on traditional methods, you leverage the power of technology. This seemingly straightforward but innovative concept is the crux of a noteworthy Fintech startup, REACH.

REACH, an ingenious brainchild of JR Kanu – a Stanford University MBA alumnus, is a versatile app that urges you to set financial goals and guides you on how much to save each time to achieve these objectives. In an enlightening interview with Mfonobong Nsehe at Forbes, Kanu gave tangible insights into the functioning of REACH. He expounded on a scenario where a group collectively plans to visit Dakar in six months, and each person needs to save 100,000 Naira. With REACH, one creates a goal titled ‘Dakar 2017’ with 100,000 Naira as the target amount and invites friends to follow suit. The app then strategically debits weekly installments until everyone successfully meets their target. Such is the simplistic brilliance of REACH.

Beyond helping individuals save, REACH turns into a valuable business connector. It links customers to the items they’ve been diligently saving for. Consequently, it earns a fee from businesses for facilitating the transaction. If a customer falls short of a savings target and requires a small loan, REACH can connect them to banks and lenders, for which it receives a commission. This service is entirely free for customers, with the commission being borne by businesses.

Prior to launching REACH, Kanu was instrumental in setting up Konga Pay, an online payment platform designed to simplify transactions for users of the eCommerce powerhouse, Konga.

Kanu is optimistic about competing with banks offering similar services via their Small and Medium Enterprises (SME) platforms. He mentions developing lucrative partnerships with leading industry names, along with incoming banking collaborations.

REACH is currently in its Beta testing phase and is expected to be accessible to the general public by the end of October.

For a deeper insight into this disruptive Fintech startup, visit their official website. To become a beta tester on Android, follow this link. For iOS users eager to explore REACH, click here.